European stocks slump after European vote, shock French election By

Jun 10, 2024
european-stocks-slump-after-european-vote, – European stock markets fell Monday, weighed by the results from the European Parliament election, which showed gains for nationalist and euro-sceptic parties.

At 03:10 ET (07:10 GMT), the in Germany traded 0.8% lower, the in France fell 1.9% and the in the U.K. dropped 0.7%.

Sentiment hit by European elections 

Risk sentiment was hit Monday after the conclusion of the four-day vote for the European Parliament, which resulted in a shift to the right and the election of more eurosceptic nationalists.

This culminated in French President Emmanuel Macron calling snap legislative elections for later this month after a strong showing in the European election by Marine Le Pen’s far-right party.

The surge in the right could result in a more polarized European parliament, potentially making it more difficult to pass EU legislation on issues ranging from climate and immigration to industrial strategy and defense.

Fed meeting looms large

Investors are also wary ahead of a meeting later this week, where the central bank is expected to keep rates unchanged. 

However, Fed policymakers are very likely to dial back on their projections for three rate cuts this year when they announce their rate decision on Wednesday, and the question is by how much.

Futures point to about 36 basis points worth of easing priced in for this year, with the odds of a September cut seen as roughly 50:50.

The key U.S. consumer price index inflation release is also on Wednesday.

The cut interest rates late last week as widely expected, and investors are now looking for clues as to whether further reductions are likely this year.

Ashtead considers U.S. move – report

In the corporate sector, Ashtead (LON:) stock rose 0.8% after the Sunday Telegraph reported that the U.K.-based industrial equipment provider is considering switching its listing to the U.S. 

Board members at the FTSE 100 group are concerned that the company, which operates largely in the States, is trading a “significant” valuation gap to that of its U.S. rivals, the newspaper reported. 

Crude gains ahead of key monthly reports 

Crude prices rose Monday, steadying after three straight weeks of losses ahead of monthly reports from OPEC and the IEA, as well as the latest meeting from the Federal Reserve. 

By 03:10 ET, the futures (WTI) traded 0.2% higher at $75.67 per barrel, while the contract climbed 0.3% to $79.86 per barrel.

The Organization of Petroleum Exporting Countries is set to release its on Tuesday, where the cartel’s outlook on annual oil demand will be closely watched. 

A monthly report from the is also due later this week.

The crude market posted their third straight weekly loss last week on concerns that a plan to unwind production cuts by the OPEC and their allies, a group known as OPEC+, from October will add to rising global supply.

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